The current situation of the labor market in Mexico is complicated and to the internal challenges that we face, we add the external challenges that we also have to face planning and implementing solutions.
More than 30 million Mexicans work in informality, this represents 57% of the employed population. According to data from the Inegi, all forms of informality grew 1.1% in 2017 compared to 2016. The Labor Informality Rate reflects the sum of the workers who are vulnerable because of the nature of the business for which they work and those whose employment link or dependency is not recognized by their source of work. Unregistered micro-businesses or other analogous modalities such as those employed on their own account in subsistence agriculture, as well as workers who work without social security protection and whose services are used by formally registered businesses.
To the mechanization and robotization of work – it should be remembered that in the tax reform that came into force in 2014, a large part of the deductions for the benefits paid to workers were eliminated, this has caused many companies to seek to mechanize or robotize productive processes instead of hiring more staff – we must add three disruptive trends for those who have formal employment. What happens in companies in the United States, sooner or later is reflected in Mexican companies.
1. The “millennials” – people who reached their adult stage after the year 2000 – no longer work in companies until their retirement.
2. The revolution of artificial intelligence is already a reality.
3. Baby boomers are postponing their retirement, millennials get married and have children at an older age than before.
In the face of all these challenges, planning and forecasting are fundamentally vital
In many jobs, the number of millennial youth exceeds those of the baby boomer generation and the next generation X. Millennials have much to offer, including diversity, knowledge of technology and fresh perspective. The challenge is to keep them for a long time in the same company. In the United States, 21% of millennials – more than three times the number of non-millennials – changed jobs last year. In addition, half of the millennials plan to be in the company working only a short time.
Although the millennials of the United States present figures very similar to those of non-millenarian ones regarding their satisfaction with the tangible rewards in their work, the demands and stress that a job imposes and the opportunities that a job offers, the satisfaction in these Three aspects is not the same as the commitment that reflects a person at work. The commitment reflects a deep emotional and behavioral connection of the person regarding their employment and the company for which they work. In the United States only 29% of the millennials are committed to their work, the rotation in the work of millennials for lack of commitment to their employment costs the economy of this country 30.5 million dollars per year.
One of the main reasons why millennials do not commit is the absence of professional and career development. Many companies lack development plans.
With the Artificial Intelligence revolution, a potential loss of the work of many people is expected in the near future. A significant proportion (37%) of millennials in the United States are in the high-risk category of being replaced by automation.
To proactively manage employees in the integration of Artificial Intelligence in the reality of the work environment, business leaders need to understand all the nuances of the emotional impact that employees have on the risk of losing their jobs. Companies that perform better, particularly in their human resources department, communicate proactively about their AI integration plan. By understanding the needs of employees and demonstrating how AI can help employees, companies improve the level of commitment of people and also improve their performance.
Baby boomers are postponing their retirement. In the United States, the number of employees age 65 and older continues to work, unlike previous generations. The percentage doubled, in 2002 it was 4% and in 2016 it was 9% and it continues to increase.
While many companies are talking about the workforce of the future, the best are already acting and preparing their plans to adapt well to this revolution of AI. These world-class companies constantly evaluate their situation to adopt advanced technology and analytics to evolve as quickly and smoothly as possible.
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